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Macdonald denies $30,000 kickbacks

Former Labor minister Ian Macdonald has denied receiving $30,000 worth of kickbacks from a mate who stood to make $60 million from a coal deal linked to the Obeids, a corruption inquiry has heard.

Mr Macdonald is in the witness stand for a third day at the Independent Commission Against Corruption (ICAC) inquiry into the opening up of coal mining in the Bylong Valley in 2008.

He was questioned on Wednesday about notes handwritten by his friend, businessman Greg Jones, which the ICAC alleges indicate Mr Macdonald stood to receive millions of dollars for favours done when he was a minister.

"Do you deny that you received about $30,000 in cash and gifts from Mr Jones or entities associated with him," Commissioner David Ipp asked.

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"Yes," Mr Macdonald replied.

Mr Macdonald conceded he had received a wedding present and birthday presents from Mr Jones but said $30,000 seemed "an extraordinary amount".

"I haven't received anything like that," he said.

Mr Macdonald is alleged to have rigged a tender process for coal mining exploration licences to benefit his former Labor colleague Eddie Obeid, whose family owned land in the Bylong Valley.

The inquiry has heard that Mr Jones stood to make $60 million from his stake in Cascade Coal, the company that ultimately won the controversial tender for the critical Mt Penny tenement.

The inquiry has heard that Cascade had a $60 million deal with the Obeids to buy out their stake in a mining venture in the Bylong Valley.